jvidÊÓƵ

Quarterly report pursuant to Section 13 or 15(d)

Information jvidÊÓƵ Liberty's Operating Segments

v2.4.0.8
Information jvidÊÓƵ Liberty's Operating Segments
 6 Months Ended
Jun. 30, 2013
Information jvidÊÓƵ Liberty's Operating Segments Ìý
Segment Reporting Disclosure [Text Block]
Information jvidÊÓƵ Liberty's Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media, communications and entertainment industries. The Company identifies its reportable segments as (A)Ìýthose consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B)Ìýthose equity method affiliates whose share of earnings represent 10% or more of the Company's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, the Company reviews nonfinancial measures such as subscriber growth and penetration.
The Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
For the six months ended JuneÌý30, 2013, the Company has identified the following businesses as its reportable segments:
•
SIRIUS XM — consolidated subsidiary that provides a subscription based satellite radio service. SIRIUS XM broadcasts to subscribers over approximately 130 digital-quality channels, including more than 60 channels of 100% commercial-free music, plus exclusive channels of sports, news, talk, entertainment, traffic, weather and data through its two proprietary satellite radio systems - the Sirius system and the XM system.
•
ANLBC — consolidated subsidiary that owns and operates the Atlanta Braves Major League Baseball franchise.
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, differing revenue sources and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant policies.
Performance Measures
Ìý
Six months ended June 30,
Ìý
2013
Ìý
2012
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
amounts in millions
SIRIUS XM
$
1,667

Ìý
622

Ìý
—

Ìý
—

ANLBC
132

Ìý
21

Ìý
102

Ìý
5

Corporate and other
68

Ìý
—

Ìý
68

Ìý
(4
)
Ìý
$
1,867

Ìý
643

Ìý
170

Ìý
1

Ìý
Three months ended June 30,
Ìý
2013
Ìý
2012
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
Revenue
Ìý
Adjusted
OIBDA
Ìý
amounts in millions
SIRIUS XM
$
938

Ìý
354

Ìý
—

Ìý
—

ANLBC
109

Ìý
20

Ìý
99

Ìý
22

Corporate and other
31

Ìý
(2
)
Ìý
36

Ìý
(4
)
Ìý
$
1,078

Ìý
372

Ìý
135

Ìý
18

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý

Other Information
Ìý
JuneÌý30, 2013
Ìý
Total
assets
Ìý
Investments
in affiliates
Ìý
Capital
expenditures
Ìý
amounts in millions
SIRIUS XM
$
29,455

Ìý
278

Ìý
60

ANLBC
595

Ìý
38

Ìý
2

Corporate and other
3,834

Ìý
3,099

Ìý
2

Ìý
$
33,884

Ìý
3,415

Ìý
64



The following table provides a reconciliation of segment Adjusted OIBDA to earnings (loss) from continuing operations before income taxes:
Ìý
Three months ended
June 30,
Ìý
Six months ended
June 30,
Ìý
2013
Ìý
2012
Ìý
2013
Ìý
2012
Ìý
amounts in millions
Consolidated segment Adjusted OIBDA
$
372

Ìý
18

Ìý
643

Ìý
1

Stock-based compensation
(48
)
Ìý
(5
)
Ìý
(89
)
Ìý
(11
)
Depreciation and amortization
(88
)
Ìý
(11
)
Ìý
(158
)
Ìý
(20
)
Interest expense
(28
)
Ìý
(2
)
Ìý
(39
)
Ìý
(5
)
Dividend and interest income
13

Ìý
21

Ìý
25

Ìý
43

Share of earnings (losses) of affiliates, net
(21
)
Ìý
1,281

Ìý
(4
)
Ìý
1,293

Realized and unrealized gains (losses) on financial instruments, net
61

Ìý
(73
)
Ìý
158

Ìý
38

Gains (losses) on transactions, net
2

Ìý
—

Ìý
7,481

Ìý
—

Other, net
(1
)
Ìý
8

Ìý
(6
)
Ìý
10

Earnings (loss) from continuing operations before income taxes
$
262

Ìý
1,237

Ìý
8,011

Ìý
1,349